Retailers Try One Last Lure

To Salvage Shopping Season, Stores Open Early and Roll Out Discounts

After a day spent catching their breath, retailers yesterday flung open their doors for pre-dawn sales and further slashed prices to try to turn around what has been a dismal holiday shopping season.

J.C. Penney started at 5:30 a.m. with door-buster deals, including $15 off purchases of $75 or more and 50 percent off some merchandise. It was the first time the department store has opened so early on the day after Christmas.

Macy's offered "lowest prices and closeouts" on mattress sets, including a free 19-inch flat-panel television. Wal-Mart announced that it will begin selling the popular iPhone 3G tomorrow, a coup for the behemoth retailer. Toys R Us dubbed this weekend "Super Deal Days" with such discounts as 50 percent off Hot Wheels Fireball Raceway and Hannah Montana dolls.

Retail sales of items excluding gasoline from Nov. 1 through Dec. 24 were down 2 to 4 percent from the comparable period last year, according to data released yesterday by SpendingPulse, an indicator compiled by MasterCard that estimates national retail spending. Shoppers cut back on key categories including electronics and apparel, which plunged 26 percent and 19 to 21 percent respectively. The sectors that performed well sold staples such as food. They included supermarkets, general merchandisers and some restaurants.

"It's really more buying based on necessity as opposed to want," said Michael McNamara, vice president of research and analysis for MasterCard Advisors. "Having a negative holiday season isn't necessarily that surprising when you saw how things were going October into November."

Vicki Brown, 56, of the District said she went to the J.C. Penney at The Mall at Prince Georges yesterday to buy just one thing. But as she stood in the checkout line, her arms were overflowing with clothes.

"I can't beat this," she said, holding up a pair of blue-checked flannel pajama pants that had been $24 and marked down to $9. "And I have my J.C. Penney coupon."

She said she had a little cash left after Christmas and was lured in by the department store's aggressive discounts, but she said she was determined not to go over her budget.

"The recession is still here," she said.

Wheaton Mall was still playing holiday carols in its hallways yesterday. Target displayed sparkling ornaments marked down 50 percent. And Lisa Raphael Kennedy, who was visiting the mall from Boston, donned a red jacket, red pants and a jingle bell necklace.

"The sales were excellent," said Kennedy as she left Target with brimming bags in each hand. "I'm shopping for next year."

Mall developer Taubman, which owns Fair Oaks in Fairfax, said yesterday that traffic was light in the morning but picked up significantly during the afternoon. Only about 15 percent of customers were returning or exchanging merchandise, and about 10 percent or less were redeeming gift cards, Taubman said.